Evening star. [volume] (Washington, D.C.) 1854-1972, 1887-04-05
ARRESTED FOR ALLEGED FRAUDS.
Charges made i'm San Francisco against
John A. Benson and others.

dispatch from San Francisco saws that the
United States grand jury, which was engaged for
nearly two weeks in investigating alleged fraudu-
lent land surveys by which IL is charged a large
amount Of money was obtained from the Govern
ment, on Saturday returned forty Indictments OF
conspiracy and perjury. The first arrests under
these indictments were made yesterday, follows:
John A. Benson of the firm OF Benson a Co., sur
veying contractors, on seven indictments OF con-
spiracy to defraud the United States; Theo Reich
ert, the present State surveyOr-general on three
indictments of conspiracy; Duucan McNee, a
partner Of Benson, on charge OF con-
spiriracy: N. F: Reilly, subcontractor, on
for perjury; j. r. Glover on two charges OF
perjury, and w. K. Slack on five charges OF con-
spiracy: Benson, Reichert, McNee, and Glover
were released on filing bonds OF s., 800 for each
charge. 1t is stated that other arrests will be
made.
John A. Benson is the head OF the firm OF Benson
& McNee, the contractors now engaged on the
Potomac flats improvement. He served term as
surveyor general Of California, and it is charged,
established surveying bureau and secured valu-
able contracts by learning the bids OF other con-
tractors 1t is alleged that he obtained large sums
OF money for fraudulent surveys, and also secured
considerable land, which he afterward sold at a
good profit. 1t is asserted that he has been the
real head Of the surveyor-generafs Office for ten
years. and one dispatch from San Francisco says
that 1t Is estimated that the profits from his con-
tracts ranged from s15O, 600 to 500, 600 yearly.
WHAT Is SAID AT THE LAND OFFICE.
At the General Land Office STAR reporter was
told that these frauds in connection with the sur
veys OF the western public lands were made
known to tho Office In 1881 by Wilson T. Smith, an
agent OF the Department, who was subsequently
removed by the influence, Il is said, OF the ring.
Their operations began in 1879 when the special
deposit system went into operation by which sur
veys OF public lands would be made by the Gov
ernmeDt surveyors when deposit OF money was
furnished. the object being TO enable settlers to
secure surveys OF their lands without waiting for
the regular survey to be made. After the survey
was made the deposit was returned in the shape OF
certificates which were received by the Govern
ment in payment OF public lands. Commissioner
Sparks stated in his last two annual reports that
the surveys by the Pacific coast ring were in the
main fictitious. He adds that he refused to audit
these accounts, and that every eXpedienU known
TO legal ch1canery has been used to force the pay
ment Of such accounts through the Treasury over
the heads of the accounting officers OF the Interior
Department. 1t is stated that the Nevada Bank
advanced the money for these operations, but
whether they had guilty knowledge is a question
that is to be established 1t is stated at the Land
Office that the bulk OF these frauds were commit
ted prior TO the year 1884, and are therefore within
the statute OF limitations; but the Information
upon which these indictments were based was Oh
tained by the preliminary examination only OF a
special agent. What complete and thorough in
vestigatiOn would result in is a question.